How to Switch Electricity Providers in Texas

The Short Version

Switching electricity providers in Texas takes about 5 minutes. You compare plans, pick one, and enroll online. Your new provider handles everything from there — they coordinate the switch with your local utility (TDU). You don’t need to call your current provider. You don’t need to do anything to your meter. Your lights stay on the entire time.

That’s it. The same wires deliver the same electricity to your home no matter which provider you’re with. Switching is a billing change, not a physical one. Your TDU doesn’t care who sends you the bill.

If that’s all you needed to know, go compare plans. The rest of this guide covers the details that help you switch smarter.

Before You Switch

Spend five minutes gathering a few pieces of information. It’ll make the whole process faster and help you pick a better plan.

Your current rate. Check your most recent bill or log into your current provider’s account. Find the per-kWh rate you’re paying now. This is your baseline — you want to beat it.

How much electricity your home uses per month. Look at your last 3-6 bills. Most providers show monthly kWh on each statement. The average Texas home uses about 1,200 kWh, but yours could be 600 or 2,500 depending on your home’s size, insulation, and AC system. Your actual number is what matters for picking the right plan.

Your contract end date. If you’re on a fixed-rate plan, check when it expires. Leaving early usually means an early termination fee ($100-200 typically). If your contract has already ended or you’re on a month-to-month plan, there’s no penalty for switching.

Your ESID number. This is your Electric Service Identifier — a 17-22 digit number that identifies your specific meter. It’s on your bill. Having it handy speeds up enrollment, though most comparison tools can look it up with your address.

Step by Step

Here’s exactly what the switching process looks like:

1. Enter your ZIP code on ChooseMyPower.org. This pulls up every plan available in your area from every provider.

2. Set your monthly kWh to match how much your home actually uses. Don’t use the default. Don’t guess. Use the number from your bills. This is how you see the real rate you’ll pay, not the advertised rate at 2,000 kWh.

3. Compare plans at your level. Sort by price, filter by contract length, check for features that matter to you (renewable energy, no ETF, etc.). Look at the rate at your kWh level, not just the headline number.

4. Click to enroll. You’ll enter your name, service address, ESID (or the tool will look it up), and desired start date. The process takes about 5 minutes.

5. Wait for confirmation. Your new provider will send you a confirmation email and a copy of your Electricity Facts Label and Terms of Service. Read them. Make sure the rate matches what you saw when shopping.

6. Done. Your new provider coordinates the switch with your TDU. Your old provider will send a final bill. Your new provider starts billing you from the switch date. The lights never flicker.

Most switches complete within 1-3 business days. If you need to time it precisely (say, to align with your contract end date), you can usually choose a specific start date during enrollment.

Contract Timing and Fees

The biggest question most people have about switching is whether it’ll cost them money to leave their current plan. Here’s how to think about it.

If your contract has ended: You’re probably on a month-to-month variable rate, and there’s no fee to switch. In fact, you should switch — that month-to-month rate is almost certainly higher than what you’d get on a new fixed plan.

If you’re mid-contract: Your current provider will charge an early termination fee (ETF). Check your EFL or contract — it’s usually $100-200, sometimes calculated per month remaining (e.g., $20 x months left).

The math that matters. An ETF isn’t always a reason to stay. If your current plan charges 14 cents/kWh and a new plan offers 10 cents/kWh, that’s 4 cents per kWh in savings. For a home using 1,200 kWh/month, that’s $48 per month. A $150 ETF pays for itself in just over 3 months. After that, you’re saving $48 every month for the rest of the new contract.

Run the numbers for your situation:

• Monthly savings = (current rate - new rate) x monthly kWh
• Break-even months = ETF / monthly savings
• If break-even is less than the remaining months on your new contract, switching saves you money even with the fee.

14 days to change your mind. Texas law gives you 14 days after receiving your Terms of Service to cancel a new plan without penalty. If you enroll and then find a better deal or change your mind, you have a window.

The Auto-Renewal Trap

This is the single most expensive mistake Texas electricity customers make, and it happens automatically.

When your fixed-rate contract ends, your provider doesn’t just stop billing you. They roll you onto a month-to-month variable rate. This rate is typically 30-50% higher than the fixed rate you were paying. On a $120/month bill, that’s an extra $36-60 every month — and most people don’t notice for months because their provider isn’t going to highlight it.

Providers are required to send you a contract expiration notice 30-45 days before your plan ends. But these notices are easy to miss — they look like every other piece of mail or email from your provider.

Here’s what to do. When you sign up for a new plan, immediately set a calendar reminder for 30 days before your contract expires. When that reminder goes off, spend 5 minutes comparing plans and either renew with your current provider at a competitive rate or switch to someone better. That single calendar reminder can save you hundreds of dollars a year.

Some providers offer plans with a “price guarantee” at renewal, meaning they’ll offer you a new fixed rate before your contract ends. That’s convenient, but still compare it to what’s available in the market. Their offer isn’t always the best one.